Comparing Performance with Other Students
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Australia-based MNC |
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|
Name of the Company |
Ticker Symbol |
Amount of Investment |
Price per Share at Purchase (17 Nov 2017) |
|
Commonwealth Bank of Australia |
CBA.AX |
A$10,000 |
80.92 |
|
AGL Energy Limited |
AGL.AX |
A$10,000 |
24.93 |
|
Foreign stocks (ADRs) |
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Name of the Company |
Ticker Symbol |
Amount of Investment |
Price per Share at Purchase (17 Nov 2017) |
|
CYBG Plc. |
CYB.AX |
A$10,000 |
5.43 |
|
Air New Zealand Ltd. |
AGL.AX |
A$10,000 |
2.84 |
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WEEK 1 – 18/11/2017 to 24/11/2017 |
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|
Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
80.57 |
-0.43% |
Share delcine in broker down grade |
|
AGL Energy Limited |
23.9 |
-4.13% |
influenced by market |
|
CYBG Plc. |
5.5 |
1.29% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.9 |
2.11% |
Air NZ wet-leases to cover 787 maintenances |
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WEEK 2 – 25/11/2017 to 1/12/2017 |
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Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
79.17 |
-1.74% |
Decline due to fall in banking sector |
|
AGL Energy Limited |
25.22 |
5.52% |
influenced by market |
|
CYBG Plc. |
5.73 |
4.18% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.88 |
-0.69% |
influenced by market |
|
WEEK 3 – 2/12/2017 to 8/12/2017 |
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Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
79.62 |
0.57% |
influenced by market |
|
AGL Energy Limited |
25.82 |
2.38% |
influenced by market |
|
CYBG Plc. |
5.76 |
0.52% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.95 |
2.43% |
Air NZ to test google translation tech |
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WEEK 4 – 9/12/2017 to 15/12/2017 |
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|
Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
79.94 |
0.40% |
influenced by market |
|
AGL Energy Limited |
24.52 |
-5.03% |
influenced by the declining oil prices |
|
CYBG Plc. |
5.66 |
-1.74% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
3 |
1.69% |
influenced by market |
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WEEK 5 – 16/12/2017 to 22/12/2017 |
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|
Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
80.39 |
0.56% |
influenced by market |
|
AGL Energy Limited |
24.39 |
-0.53% |
influenced by the market |
|
CYBG Plc. |
5.8 |
2.47% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.93 |
-2.33% |
Decline due to increment in oil prices |
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WEEK 6 – 23/12/2017 to 29/12/2017 |
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|
Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
80.34 |
-0.06% |
Ausi banks blocking bitcoin transfers |
|
AGL Energy Limited |
24.36 |
-0.12% |
influenced by the market |
|
CYBG Plc. |
5.79 |
-0.17% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.89 |
-1.37% |
influenced by the market |
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WEEK 7 – 30/12/2017 to 5/1/2018 |
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|
Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
81.16 |
1.02% |
Increment due to successful low cost funding via tier bonds |
|
AGL Energy Limited |
24.32 |
-0.16% |
influenced by the market |
|
CYBG Plc. |
5.64 |
-2.59% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.88 |
-0.35% |
influenced by the market |
|
WEEK 8 – 6/1/2018 to 12/1/2018 |
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|
Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
80.88 |
-0.34% |
influenced by the market |
|
AGL Energy Limited |
24.25 |
-0.29% |
influenced by the market |
|
CYBG Plc. |
5.56 |
-1.42% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.76 |
-4.17% |
influenced by the market |
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WEEK 9 – 13/1/2018 to 19/1/2018 |
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|
Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
79.83 |
-1.30% |
Rate rigging by the bank |
|
AGL Energy Limited |
23.67 |
-2.39% |
UBS downgrades of two stock after their 30% surge in 2 months |
|
CYBG Plc. |
5.76 |
3.60% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.68 |
-2.90% |
influenced by the market |
WEEK 10 – 20/1/2018 to 26/1/2018
|
Name of the Company |
Stock Price at end of the week |
Percentage change in stock price |
Primary Reason |
|
Commonwealth Bank of Australia |
78.65 |
-1.48% |
Rate rigging by the bank |
|
AGL Energy Limited |
23.47 |
-0.84% |
influenced by the market |
|
CYBG Plc. |
5.72 |
-0.69% |
Changes influenced by market performance |
|
Air New Zealand Ltd. |
2.7 |
0.75% |
Air NZ to experiment with translation tech |
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PORTFOLIO RETURN: |
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|
Name of the Company |
Ticker Symbol |
Opening Value |
Closing Value |
Opening Portfolio Value |
Portfolio Return |
Closing Portfolio Value |
Return in % |
|
Commonwealth Bank of Australia |
CBA.AX |
$ 80.92 |
$ 78.65 |
$ 10,000.00 |
($ 280.52) |
$ 9,719.48 |
-2.81% |
|
AGL Energy Limited |
AGL.AX |
$ 24.93 |
$ 23.47 |
$ 10,000.00 |
($ 585.64) |
$ 9,414.36 |
-5.86% |
|
CYBG Plc. |
CYB.AX |
$ 5.43 |
$ 5.72 |
$ 10,000.00 |
$ 534.07 |
$ 10,534.07 |
5.34% |
|
Air New Zealand Ltd. |
AGL.AX |
$ 2.84 |
$ 2.70 |
$ 10,000.00 |
($ 492.96) |
$ 9,507.04 |
-4.93% |
|
TOTAL |
$ 40,000.00 |
($ 825.05) |
$ 39,174.95 |
-8.25% |
The above table mainly indicates the overall return that is provided by the created portfolio. However, portfolio mainly provided a negative return of -8.25%, which is due to the problems in selecting the overall stocks. On the other hand, other students mainly got the overall return of 20.37% and 171.22%, which depicts effectiveness of the portfolio. The diversified returns provided by the portfolio is mainly due to market conditions, which influenced the return provided from investment.
Figure 1: Comparison between CBA and Australian market
From the overall evaluation of the above figure it is detected that share price movement of the company is mainly influenced by the market. The pattern of the share price and Australian index are relatively same. However, the returns provided by the company is relatively higher than the Australian index. Thus, it could be understood that the Australian market drives the returns of the company
Figure 2: Comparison between AGL and Australian market
The overall share price movement of AGL is relatively not synchronized with the Australian market, which is adequately depicted in the above figure. In addition, the companies share price is relatively volatile in comparison to the Australian index. Therefore, it could be understood that share price movement of AGL is not influenced by the Australian market.
Figure 3: Comparison between AIZ and New Zealand index
From the evaluation it could be understood that stock price pf AIZ is not influenced by the New Zealand index. Hence, it is detected that increment in value of New Zealand index is not complemented with the AIZ share price, instead the company share value are falling. This directly indicates that the share price of AIZ is not driven by the New Zealand index.
Figure 4: Comparison between CYB and UK index
The evaluation of above figure indicates the overall linkage between CYB and UK index, where the company operates. There is no linkage between the UK index and CYB, as share price value of CYB is relatively volatile in comparison to the FTSE 100. Thus, the share price movement of CYB is not influenced by UK capital market.
Figure 5: Comparison between CYB and AIZ
The negative correlation between CYB and AIZ is mainly detected from the overall figure, where rising value of CYB was not complemented by AIZ share price. In addition, when value of AIZ rose the value of CYB declined and vice versa. This directly indicates the negative correlation between both the stocks.
Assessing Australia-based MNCs
Figure 6: Comparison between CYB and Australian market
Relevant comparison between the share value of CYB and Austrian market is also conducted to identify, where the increment in derived by the Australian market. However, no such indication is derived from the above figure, as the shar price of CYB is not influenced by the Australian market.
Figure 6: Comparison between AIZ and Australian market
The share price value of AIZ has mainly declined, while increment in value of Australian market can be seen. This indicates that share price of AIZ is not driven by the ASX market.
Figure 7: Comparison between AUD and USD
The operation of CBA in foreign are mainly conducted on USD, where the value of USD against AUD mainly declined over the past trading day. On the other hand, the company mainly provided fair return during the trading period, which indicates that currency volatility influences share price of CBA.
Figure 8: Comparison between AUD and USD
The decline in value of USD in comparison to AUD has can be seen in the above figure, whereas the performance of AGL has also declined indicating the involvement of currency exchange. Hence, it could be understood that the currency volatility market influences share price of the company.
Figure 9: Comparison between AUD and New Zealand Dollar
The overall evaluation indicates that share price of AIZ is influenced by the currency fluctuations in AUD and New Zealand dollar. The strengthening of AUD against New Zealand dollar is weakening the overall performance of AIZ during the trading period. Hence, it could be understood that the share price of AIZ is directly influenced by currency market.
Figure 10: Comparison between AUD and GBP
From the evaluation it could be understood that the no impact of currency volatility is affecting the share price valuation of CYB. This is mainly since the company’s share price rise during the trading period, while AUD strengthened against GBP. This indicates that no intervention of the currency market can be seen, while evaluating the share price of the organisation.
Reference
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